Tenant With 2 Months Arrears – “Do what you like”!

Hi Simon,

You cannot end a tenancy with a Section 21 within the fixed term. And for Section 21 to be valid you will need to prove you have served all the associated regulatory compliance that goes with it. Deposit Protection Prescribed Information, EPC, gas cert, How To Rent Booklet. The break clause is immaterial really. Rely on the Section 8. Non - payment of rent. But be aware that if they pay up before the court hearing so its less than one month then the Judge will not award possession.

Reply to the comment left by "Gary Nock" at "19/01/2017 - 14:03":

Thanks Gary! That's interesting as I have spoken to lady who is a solicitor who served notices on my behalf stated that I can exercise my rights for early termination break clause. As in tenancy it states Early termination not earlier than 6 months but by the time it expires it would have been six months.

No deposit was taken and it is confirmed on Tenancy that she has received EPC, Gas Safety and Renting Guide leaflet.

Hi Simon. I would not argue with a qualified solicitor who should know about such matters. But....a tenancy agreement is subservient to the Deregulation Act 2015 which governs Section 21 processes along with other landlord and tenant law. Romain who posts on here is pretty knowlegeable on these matters and hopefully he may see it and post his opinion. I would rather rely on statute rather than contract ( AST ) law.

Thanks Gary. I hope Romain reads it and gives his opinion.

I am surprised Neil Patterson has not commented, usually he makes first initial brief response!

Break clauses are more common in commercial leases where there is not the Assured Shorthold Tenancy regulations to be concerned about.

My understanding is, you cannot have a break clause within the prescribed term of the tenancy but I am more than happy to be proved wrong.

If the tenant is with you a little longer and more persistently neglects the rent you can then serve a Ground 11 which is persistent none payment and this can be used even if the tenant gets the rent paid before the court hearing.

Hopefully it won't come to this but it is worth remembering.

Hi Simon
Re the point about her possibly claiming she paid you in cash, I wouldn't worry about that as the judge would only believe it if she could prove it, which she obviously can't.

Sorry you have to go through this. Been there and got the t-shirt - when they say they'll pay double the next month, but they couldn't 'afford' to pay the first month. Obviously she spent the money on Christmas. It's a horrible feeling when these tenants turn 'rogue' and behave like cheating you out of the rent money is fine and that it's not their 'responsibility.' It's a bit like a bully in the playground has stolen your dinner money, is laughing at you, and no-one is on your side. You can feel a bit of a mug, but that is not the case at all. They are little shits and you are fine. I am sure many business people feel the same - when they supply goods and the recipient then won't pay for the goods.

I have a tenant who paid as regularly as clockwork, but stopped paying a few months ago and he went from being what I thought of as a really nice tenant to a nasty bit of work, and the kind of loose cannon who is behaving like he could burn the house down. It's not pretty. And court fees have gone up about three times to £325, so when they say they are leaving in a week or two it's tempting to hang on and see - but they can then buy themselves even more time.

The best of luck with this. All of us who have been in this game for a while can feel your pain.

Reply to the comment left by "Dr Rosalind Beck" at "20/01/2017 - 09:38":

Whilst I am sure I will maintain my regular attendance at Court (usually it's the homeowner guarantor rather than the tenant themselves), I am looking into alternative, more immediate remedies.

No doubt it would require jumping through hoops (FCA licence perhaps...), but I wondered about taking a logbook as an additional form of security. Or anything that could be removed fairly immediately. Just like would be the case with a defaulted logbook loan repayment, their car becomes mine. Or perhaps a swipe of the guarantors credit card...just like a hotel would refer back to should the room be trashed.

Sorry to hijack, but wondered if anyone else had any ideas or comments on the above strategies.

I haven't taken deposits for over ten years (just a homeowner guarantor) and I was labelled a maverick back then, but now it's common practice.

There is no issue with having a break clause.

It has previously been held that a s.21 notice could be used to exercise the right to break under a break clause as long as the notice complies with the conditions of the break clause.
However, the best way to avoid arguments is, I think, to give notice under the break clause then to give notice under s.21.

Luke I know you are an experienced landlord from your posts. I don't know your portfolio size but I rent insure all my properties and those of my landlords for £100 per year per property. Okay the tenants and I have to jump through the referencing hoops but once passed the insurer takes it on. Don't want to mention them here as obviously it's free advertising for them. But as long as you read all the policy "get outs" and devise a checklist so every tenancy complies then it's fine. You have 42 days to submit a claim or if you want it paid monthly then put a claim in within 14 days and its paid in arrears. And then the insurer appoints a solicitor / barrister who goes to court with you and does all that needs to be done . I know you are quite capable of doing all this yourself as am I but the time and money it takes when one goes rogue is far in excess of the £100 per property I pay on my block policy. For those that can't do it and have to pay solicitors then it's a no brainer.

Reply to the comment left by "Gary Nock" at "20/01/2017 - 11:48":

Thanks Gary,

The problem we have here in poor Grimsby/Cleethorpes/Immingham is that none of my 'customers' would pass the credit/referencing checks that the RGI require.

Short, sharp justice is what works here.